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The president emphasized that this temporary “double-sided” ceasefire hinges on Iran reopening the Strait of Hormuz, a strategic shipping lane that had been closed during the five-week crisis, triggering spikes in global energy costs.
Iran’s Supreme National Security Council confirmed the two-week reopening, contingent on halting all attacks. A statement from Iran’s foreign minister clarified that shipping traffic must be coordinated with Iranian military forces. Israel has reportedly agreed to the ceasefire as well, signaling regional buy-in.
“It wasn’t much of a surprise that there was an announced reprieve in the Iranian conflict. The market has gotten much better at sniffing out” Trump’s next move, said Jay Woods, chief market strategist for Freedom Capital Markets. “The concern now is if this all too familiar ‘two-week’ timeframe is going to lead to a resolution.”
Investors got a further boost Wednesday morning when Trump revealed that the U.S. is negotiating with Iran on removing nuclear material and exploring potential tariff and sanctions relief, signaling that diplomacy may finally be gaining traction.
Stock rallies were led by major tech and previously beaten-down companies. Nvidia and Amazon each surged more than 3%, while Tesla climbed over 2%, reflecting renewed optimism in the technology sector.
Industrial and financial giants also experienced significant gains. Boeing and JPMorgan saw their shares jump over 4%, benefiting from the reduced geopolitical risk and stabilizing markets.
Energy stocks, however, suffered as crude prices tumbled. Exxon Mobil fell more than 7%, and Chevron lost over 6%, showing how quickly the sector reacts to global oil supply and geopolitical developments.
With the temporary ceasefire in place, markets have responded with relief and enthusiasm. The coming weeks will be critical as investors closely monitor negotiations and watch whether this short-term reprieve can evolve into a lasting resolution, offering stability to both energy prices and global markets.
